Big Shift: Dangote’s Direct Petrol Supply Cuts Out Middlemen, Crashes Pump Prices
- The Dangote Refinery’s direct petrol delivery has begun disrupting the fuel supply dynamics in the downstream petroleum sector
- The National Association of Road Transport Owners (NARTO), via its President, Yusuf Othman, said bulk buyers are now bypassing middlemen
- The NARTO president said that Dangote’s direct supply may cause huge losses to the association’s members
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
As Dangote Refinery begins its direct fuel distribution, bulk buyers and filling stations are jettisoning middlemen for the refinery’s direct delivery.
According to the President of the National Association of Road Transport Owners (NARTO), Yusuf Othman, bulk buyers have renegeged on the contracts signed with his members in favour of Dangote’s free delivery.
Source: Getty Images
Nationwide fuel supply: NARTO members cry out
The NARTO leader said that his members have about 30,000 trucks and cannot deliver fuel for free.
“We have our members who have signed agreements with so many companies.
He revealed that some of the agreements are informal, while some are formal, stating that NARTO members use the formal agreements to secure bank loans to purchase trucks and serve the companies.
However, Othman said, those agreements are in danger because a larger supplier is about to enter the market, disregarding the existing deals they have signed with NARTO.
Bulk buyers shun middlemen
“Though they have not officially informed us, and it’s not officially confirmed, the information available to us showed that this is ongoing, and as such, our trucks will not be used again,” he said.
The NARTO boss appealed to the Nigerian government, especially the NMDPRA, to invoke Section 212 of the Petroleum Industry Act (PIA) to forestall development.
Othman asked Dangote to reconsider the survival of other players in the industry.
According to a report by Punch, Othman declined further comments, stating that there was a plan for a ceasefire and that they may begin negotiations.
Dangote Refinery delivers free fuel
Reports say that before Dangote asked filling stations and bulk buyers to register for direct supply, some middlemen purchased from refineries or depots and resold to bulk buyers.
However, the mega refinery’s free fuel distribution seems to have halted the old order as buyers now apply directly to save costs.
Legit.ng reported that the Dangote Refinery began its nationwide fuel supply on Monday, September 15, 2025.
Fuel prices crash in Nigerian cities
The plant reportedly deployed over 1,000 CNG-powered trucks to Lagos, Ogun, Ondo, Oyo, Ekiti, Edo, Delta, Rivers, and Abuja.
The plan also came with a price reduction, and other South-West states will see fuel selling at N841 per litre, while Abuja, Rivers, Edo, Delta, Rivers, and Kwara states will sell at N851 per litre.
A statement from the Dangote Refinery disclosed that the first phase will cover Abuja, Kwara, Delta, Edo, Rivers, and some South-West states, with nationwide expansion slated as additional trucks arrive.
Fuel marketers disclosed on Friday, September 18, 2025, that Dangote’s CNG trucks have begun delivering fuel to their filling stations at zero cost.
IPMAN praises Dangote’s gesture
This was disclosed by the national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Shettima.
The IPMAN boss said that Dangote has begun free delivery in most parts of the South West, with the trucks discharging their products.
Speaking on the price, the IPMAN boss explained that prices would drop from N865 to N841 the moment petrol gets to the stations under the new arrangement.
Source: UGC
Shettima confirmed that his marketers are very pleased, with members already receiving fuel trucks in Lagos, Ondo, Ogun, Ibadan, and other areas.
The IPMAN boss also stated that under the new arrangement, petrol prices are expected to decrease from N865 to N841 once they reach the stations.
Dangote refinery hikes petrol price
Legit.ng earlier reported that after a few days of crashing petrol prices to N820 per litre, the 650,000 Dangote Refinery has again raised the gantry rate to N835 per litre.
The new increase, which has yet to be officially confirmed, represents a 0.36% increase and N17 addition per litre.
Data obtained from the petroleum product monitoring platform, PetroleumPriceNG, shows that the current rate by the refinery is one of the highest rates among depot owners.
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Source: Legit.ng
